{"id":37614,"date":"2017-07-04T18:24:46","date_gmt":"2017-07-04T08:24:46","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=37614"},"modified":"2017-07-04T18:24:46","modified_gmt":"2017-07-04T08:24:46","slug":"risk-advice-business-viability-post-lif","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/07\/04\/risk-advice-business-viability-post-lif\/","title":{"rendered":"Risk Advice Business Viability Post LIF"},"content":{"rendered":"<div id=\"polls-183\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>Will the Life Insurance Framework remuneration model allow a risk-focussed advice business to remain sustainable?<\/strong><\/div><div id=\"polls-183-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>No <small>(54%)<\/small><div class=\"pollbar\" style=\"width: 54%\" title=\"No (54% | 190 Votes)\"><\/div><\/li>\n\t\t<li>Yes <small>(31%)<\/small><div class=\"pollbar\" style=\"width: 31%\" title=\"Yes (31% | 109 Votes)\"><\/div><\/li>\n\t\t<li>Not sure <small>(15%)<\/small><div class=\"pollbar\" style=\"width: 15%\" title=\"Not sure (15% | 54 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_183_nonce\" name=\"wp-polls-nonce\" value=\"34160cf0af\" \/>\n<\/div>\n\n<p>We&#8217;re continuing with our latest poll for another week due to the significant level of debate in which our adviser audience is engaging.<\/p>\n<p><!--more-->Take this link to view the exchanges that have been taking place on this critical question: <a href=\"https:\/\/riskinfo.com.au\/news\/2017\/06\/27\/jury-still-out-on-future-for-risk-advice-specialists\/\" target=\"_blank\">Jury Still Out on Future for Risk Advice Specialists<\/a> (scroll to the end of the article&#8230;).<\/p>\n<p>Our poll was initially based on comments made by specialist risk adviser and consultant, <strong>Chris Unwin<\/strong>, in which he outlined the posiibility of a three-step process he believes can be implemented under which advisers could charge a fee for risk advice (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2017\/06\/19\/three-step-process-to-charging-fees-for-risk-advice\/\" target=\"_blank\">Three Step Process to Charging Fees for Risk Advice<\/a>).<\/p>\n<p>Common points being made by current and former advisers who have been engaged in this debate include:<\/p>\n<ul>\n<li>There is no way an average risk business can survive on the 60\/20 remuneration model<\/li>\n<li>Mums and dads will not pay a fee for life insurance advice, although SME and other business clients may be prepared to do so<\/li>\n<li>The apathetic nature of the Australian consumer towards life insurance is not conducive to their paying a fee for life insurance advice<\/li>\n<li>Consumers would not be prepared to pay a fee for life insurance advice if their insurance application is declined<\/li>\n<li>Many experienced risk-focussed advisers will drastically reduce or cease writing new business because it makes no commercial sense. Instead they will &#8216;sit&#8217; on their renewal commission income and reduce overheads.<\/li>\n<li>A hybrid model with a one-year claw-back might work, as might a two-year clawback on an upfront model. But the intended two-year clawback on a 60\/20 hybrid model will not be commercially viable. &#8220;You cannot write new business at a loss.&#8221;<\/li>\n<\/ul>\n<p>We welcome your further comments or observastions, especially if you have yet to add your voice to the conversation, as our poll remains open for one more week&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We&#8217;re continuing with our latest poll for another week due to the significant level of debate in which our adviser audience is engaging.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[],"class_list":{"0":"post-37614","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-compliance-regulation","7":"category-polls","8":"category-remuneration"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/37614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=37614"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/37614\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=37614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=37614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=37614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}